ITO Intechnology

RNS Number:7676P
InTechnology PLC
05 August 2005


Embargoed for release at 7am - 5 August 2005


                                InTechnology Plc

                                 Trading update


InTechnology has, in common with many other Vendors and Channel Partners,
continued to experience pricing pressure in its Distribution businesses in the
UK and Continental Europe during the first four months of this financial year.

In addition, within the Security businesses, margins were impacted by the recent
appreciation of the US Dollar against both Sterling and the Euro.  Many Security
products are purchased in USD, but sold in Sterling (UK) and Euros (Euro zone).

The pricing pressure in the Distribution business will result in earnings before
interest, tax, goodwill amortisation and exceptional charges for the first
half-year being below market expectations.  However, Managed Data Services is
expected to be above market expectations.

InTechnology also announces that it has embarked on a major restructuring of its
businesses both in the UK and European subsidiaries in order to achieve cost
savings across the group and improve operating efficiencies. The first half-year
results will therefore show an exceptional reorganisation charge.  Further
details of this charge will be announced later this month, together with a
further trading update.

The reorganisation, affecting employment, premises and other operating costs, is
now  being implemented and is expected to result in the second half-year's
trading bring in line with present market expectations, even though the results
for the year as a whole will be impacted by the performance in the first half.


For further information:

  InTechnology plc                                              01423 877 442
  Peter Wilkinson / Andrew Kaberry

  Financial Dynamics                                            020 7831 3113
  James Melville-Ross



                      This information is provided by RNS
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